1.14.4.15
Disposition of Personal Property

1.14.4.15.1
(11-24-2014)Property Disposition Responsibilities

Responsibilities described in this IRM apply to all FMSS offices.

FMSS Section Chiefs are responsible for the Property Program as Property Officers, survey property for disposal, and control
the disposition of all property within his/her jurisdiction. The Property Officer approves all disposal actions.

The Property Officer may delegate inventory and other property management activities, but is accountable for control and approval
of property disposal actions.

FMSS Section Chiefs are authorized to prepare and submit Standard Form 120 (SF-120), Report of Excess Personal Property, to GSA.

In order to ensure that the duties and functions are appropriately separated, no employee shall be responsible for two or
more of the following duties:

receive property,

inventory property on KISAM, or

sign disposition documents as the Authorizing Official.

1.14.4.15.2
(11-24-2014)Disposal of IT Equipment

When an organization determines that their IT property is no longer needed for its original purpose, the respective office
initiates an SF-120 through their Information Technology (IT) Asset Inventory Personnel. The SF-120 is submitted through the
IT Asset Inventory Personnel to the local FMSS office.

At the time IT equipment is picked up for disposal, FMSS provides a copy of the request (i.e. RTS requisition, ERC ticket,
etc.,) to the KISAM coordinator.

When property has been removed (disposed) from IRS, FMSS provides a copy of all disposal documents to the appropriate KISAM
coordinator, either for information purposes (to the computer asset inventory specialist), or for database update (FMSS) within
30 days after the final disposal is completed. This disposal document contains all final disposition information, including
how the equipment was disposed, disposition date, etc.). KISAM will be updated within 10 workdays, with the final disposition
information

1.14.4.15.3
(11-24-2014)Declaration of Property as Excess

One duty of a Property Officer is to continuously survey property under his/her jurisdiction to identify any property excess
to local needs. In determining property excess, the Property Officer considers:

The feasibility of transfer to other offices within his/her jurisdiction, taking into account condition of property, transportation
charges, etc.

When the Property Officer determines property is excess to the needs of all offices in his/her jurisdiction, he/she will report
it for disposition. All excessed property except for scrap or salvage (as defined in FMR 102-36.40) is reported on SF-120.
Procedures for abandonment or destruction of property are detailed in this section.

The reporting Property Officer prepares the SF-120, for GSA, retaining one copy for the file.

Excess property can be reported with a tentative release date. For example, when the purchase of a new item will cause an
old item to become excess, the expected release date would be the anticipated delivery date of the new item. If the expected
release date should change for any reason, the report can be amended to change the date or the report can be cancelled.

1.14.4.15.4
(11-24-2014)Action by Property Officer

Circulating SF-120 - The Property Officer screens the report for requirements of other offices under his/her jurisdiction. If a need exists
and transfer is feasible, he/she will prepare an SF-122, Transfer Order, Excess Personal Property for the transfer. See Exhibit 1.14.4-1 for a list of GSA Disposal Condition Codes.

If the condition code of the property listed on the SF-120 is 7, X, or S, he/she will send the SF-120 directly to GSA because
property in any of these conditions is considered excess to the needs of IRS. The disposal condition code definitions are
also found in FMR 102-36.240.

If the condition code of the property is 1 or 4, he/she will circulate a copy of the SF-120 to the Property Officers in other
Territory offices. Procedures for the exchange/sale of personal property are detailed in this section, as are procedures for
disposition of scrap and salvage.

The Property Officer includes on the SF-120 any excess non-reportable furniture or equipment that are classified as salvage
or scrap condition, office supplies and devices classified in condition code 1, and books and pamphlets condition code 1 or
4.

The Property Officer will circulate the SF-120 within five (5) days after receipt. Material listed will be held for seven
(7) workdays from the date circulated. The form, or its transmittal, should read, "Circularized in accordance with Section
(e)."
If a transfer request is not received within the seven workday period, the Property Officer forwards the request to GSA,
or the Defense Reutilization and Marketing Service (DRMO), as applicable.

Transfers between federal agencies are accomplished through use of SF-122, Transfer Order, Excess Personal Property. Procedures for affecting such transfers are detailed in FPMR 101-43-309.5.

Note:

Transfer of property on temporary loan to another agency is authorized and documented on SF-122.

If the Property Officer receives no request within a reasonable time, he/she may declare the property surplus.

1.14.4.15.5
(11-24-2014)Reporting Excess Personal Property to GSA

The physical condition of the property is the same as or better than the minimum reportable disposal condition code shown
in the last column of FMR 102-36.240; or

The original acquisition cost per line item is $1,000 or more.

If property with Federal Supply Classification (FSC) 71 has an acquisition cost (or standard price) of $500 or more, he/she
will prepare an SF-126, Report of Property for Sale, when the property:

Has a condition code less than the minimum reportable disposal code, and

Has an original acquisition cost per line item less than $1,000.

Separate reports of Property for Sale will be prepared by FSC Group for the following categories of property:

Office machines (other than typewriters);

Typewriters;

Furniture;

Weapons; and

IT equipment.

Printing, binding, and related or auxiliary equipment will not be reported to GSA as excess unless specifically authorized
by the Director, Multimedia Division, National Office.

A tentative release date for the excess property can be submitted on the SF-120, as stated above.

1.14.4.15.6
(11-24-2014)Action by GSA

Upon receiving the SF-120, GSA screens government agencies for possible utilization of the excess items listed. If the excess
property is not requested by another agency, the property becomes surplus when released by the GSA Administrator. Normally,
release is made 60 days after the SF-120 is received in the GSA office. However, the GSA Administrator, or his designee, may
extend a surplus release date if such an extension is consistent with utilization objectives.

GSA provides a period of 21 calendar days following a surplus release date to set aside surplus reportable and nonreportable
property determined to be usable and necessary for donation purposes. Reportable surplus property will be set aside for donation
when an application for donation, with an informational copy to the holding activity, is submitted to a GSA regional office
for approval within the donation screening period. Nonreportable surplus property will be set aside for donation upon notification
to a holding activity within the donation screening period by a responsible federal official, a state agency representative,
or an authorized donee representative that the property is usable and necessary for donation purposes.

1.14.4.15.9
(11-24-2014)Application for Donation of Surplus Property

All donations of surplus property are to be accomplished by use of SF-123, Transfer Order, Surplus Personal Property. Property officers will not release property for donation without an SF-123, signed by the approving officer of the appropriate
GSA regional office.

The state agency, college or university, etc., eligible to receive donated property, prepares an SF-123, Transfer Order, Surplus
Personal Property. The SF-123 is submitted to GSA for approval, with an information/hold copy to the reporting agency.

1.14.4.15.10
(11-24-2014)Sale of Personal Property

General - FMR 102-38 prescribes the policies and methods of disposal of personal property by public sale.

The two major categories of IRS personal property that can be offered for public sale are surplus property and exchange sale
property.

GSA may offer for public sale non-reportable property IRS screened for utilization and subsequently reported to GSA on SF
126

If GSA determines that there will be proceeds from the sale of non-reportable property, GSA itself may elect to offer the
property for sale.

If GSA determines that there will not be sufficient proceeds from sale to cover the cost of conducting the sale of non-reportable
property, GSA may elect to authorize the reporting agency either to scrap the non-reportable property or to conduct a small
lot sale on-site.

1.14.4.15.12
(11-24-2014)Sale of Reportable Property

If GSA is unable to dispose of property reported on SF-120 by transferring it to another agency or donating it to a public
body, the property automatically becomes eligible for sale and is sent to the Chief, Sales Center, in the GSA Region where
the property was originally reported.

The GSA Regional Utilization Branch will turn the property over to their Sales Branch to sell. Further action by IRS is limited
to that stated in FMR 102-39.

1.14.4.15.13
(11-24-2014)Sale of Surplus Property by IRS

After consulting with IRS, GSA Regional Offices may, on a case-by-case or blanket basis, authorize IRS to conduct a Limited
Sale of reportable and nonreportable property, particularly on small lots of limited value or property at isolated locations.
See FMR 102–38, Subpart B.

1.14.4.15.14
(11-24-2014)Proceeds from Sale of Surplus Property

Proceeds from the sale of surplus property are deposited to the Miscellaneous Receipts Account 20-3224. These funds cannot
be applied toward the purchase of a new similar item of equipment.

When the Property Officer notifies GSA on SF-126 of personal property for sale, he/she should include the deposit identification
on the form.

GSA deposits the proceeds initially to their Suspense Account and then transfers the funds to IRS on Standard Form 1081, Voucher and Schedule of Withdrawals and Credits. The SF-1081 refers to the sales number covered by the fund transfer.

When the sale has been accomplished, the Property Officer forwards a copy of the sales document to the Beckley Finance Center
who will receive the fund transfer from GSA.

1.14.4.15.15
(11-24-2014)Exchange/Sale Property

Certain kinds of IRS personal property may be sold or exchanged (traded in) and the proceeds from the sale or the exchange
allowance applied toward the purchase of similar new personal property. See FMR 102-39.60.

FMR 102-39.45 lists property ineligible for exchange sale. Furniture, and office supplies and devices are included in the
listing. Categories of items eligible for exchange/sale are also shown.

Items sold or exchanged (traded in) cannot be declared excess but must be items for which replacement is required to conduct
approved programs.

At the time of exchange or sale (or at the time of acquisition if it precedes the sale) the Property Officer makes a written
administrative determination to apply the exchange/sale allowance or proceeds of sales to the new purchase. See FMR 102–39.

If the property is IT, the IT Asset Inventory Personnel prepares an SF-120 to record the transaction.

1.14.4.15.16
(11-24-2014)Accounting for Proceeds of Sale

Sale of Property before the Purchase of Replacement Property:

Proceeds from the sale of equipment to be replaced (except automobiles) are deposited in the Budget Clearing Account (Suspense)
20F3875(09). GSA furnishes the Property Officer with the appropriate notice of award when the property is sold. The Property
Officer sends a copy of the award to the reporting Property Officer and to the Beckley Finance Center.

When the Property Officer issues purchase orders for the purchase of similar items against which proceeds of the sale are
to be applied, he/she notifies FMSS Financial Management of the sale proceeds. They will be applied against the purchase by
including the information on copies of the purchase order retained. This notification lists the serial numbers (where applicable),
dollar amount of proceeds, and the GSA award information and date on which the sale was documented.

1.14.4.15.17
(11-24-2014)Sale of Property after the Purchase of Replacement Property

Proceeds from the sale of property after replacement purchase are deposited directly to the proper appropriation for the current
fiscal year. The Property Officer notifies Beckley Finance Center of the purchase order number of the new item(s), the dollar
amounts of proceeds to be applied, and the number and date of GSA award on which the sale was documented.

1.14.4.15.18
(11-24-2014)Sale of Automobiles, Including Trucks, and Deposit of Proceeds

All automobiles scheduled for disposal are sold as exchange/sale property, regardless of the amount of proceeds. Proceeds
are deposited to the Budget Clearing Account (Suspense) 20F3875(09).

GSA is instructed on the SF-126 to transfer the proceeds to the Beckley Finance Center, Agency Station Symbol 20-09-0000.
When the sale has been completed, the Property Officer sends a copy of GSA award document, to the Beckley Finance Center.
The age and mileage of the vehicle must be entered on the GSA award document.

1.14.4.15.19
(11-24-2014)Availability of Funds

All funds from the sale of personal property for replacement purposes are available for obligation during the fiscal year
in which the sale is made and for one fiscal year thereafter, for the purchase of similar replacement items of personal property.

General - The priority for disposing federal excess and surplus personal property is as follows:

Utilization,

Donation,

Sale, and

Abandonment or Destruction.

Property reported for abandonment or destruction is usually declared excess by IRS and enters the disposal process at the
utilization cycle and proceeds through the process until appropriate removal is effected. Normally, property is designated
for abandonment or destruction only after it has been offered through utilization, donation, and sale without success. Depending
upon the property's characteristics, condition, or location, abandonment or destruction may be authorized in lieu of reporting
the property to GSA. Abandonment or destruction may be authorized by law, regulation, or IRS directive for reasons of public
health, safety, or security. It may be accomplished at any time during the disposal process if these actions are warranted
and if authorized by a specific law, regulation, or authority.

As with other property disposition methods, action concerning federal excess and surplus personal property to be abandoned
or destroyed must be fully documented to establish a clear audit trail. Since this method of disposal is of frequent interest
to auditors, investigators, and the general public, great care should be taken to fully justify, document, and insure audit
trail clarity for all abandonment or destruction disposals.

1.14.4.15.21
(11-24-2014)Preliminary Procedures

In general, property abandonment or destruction does not require prior approval from GSA. These methods can be used without
reporting the personal property to GSA. A written determination by a duly authorized official must be made to identify the
proper conditions which support abandonment or destruction. These conditions are as follows:

The property has no commercial value, either as an item or as scrap;

The cost of care, handling, and preparation of the property for sale would be greater than the expected sale proceeds (estimated
fair market value);

A law, regulation, or directive requires abandonment or destruction action;

Written findings by an authorized official, approved by a reviewing official not directly accountable for the property;

Officials having program responsibilities governing health, safety, and security direct the abandonment or destruction action;
and

Donation of the property is not feasible, or efforts to donate the property have been unsuccessful.

1.14.4.15.22
(11-24-2014)Disposal of Software

Procedures for disposing of software no longer needed for the purpose for which it was originally acquired are listed below.
GSA does not require interagency screening of Federal Information Processing (FIP) software.

Consistent with the limitations of any applicable license, the priority order for releasing software is as follows:

make available for reassignment within the agency FIP software no longer needed for the purpose for which it was originally
acquired,

make available for interagency transfer excess FIP software not exchanged or sold if the holding agency learns of a potential
user outside of the screening process, and

for excess FIP software not reassigned, transferred, exchanged, or sold, either return it to the licenser or have it destroyed
after a duly authorized official (e.g. supervisor, Property Officer) has determined in writing that destruction is the most
cost effective method. Software cannot be donated under any circumstances.

1.14.4.15.23
(11-24-2014)Destruction of Copier Hard Drives

The destruction requirements referenced in IRM 2.7.4 and IRM 10.8.1.4.7.3 apply to computer and digital copier hard drives,
among other electronic media components. Hard drives that are included in digital copiers must be controlled and removed for
destruction before the equipment is returned to the vendor, sold, donated, or otherwise excessed. Hard drives must also be
retrieved before copiers are removed from IRS sites for repair.

Defined accountability measures must be taken when shipping any electronic media, such as these hard drives, in order to safeguard
Personally Identifiable Information (PII). Specific instructions for the retrieval and release or disposal of copier/multifunction
device hard drives are provided in The National Copier Program Desk Guide

1.14.4.15.24
(11-24-2014)Authorizations for Abandonment or Destruction of Personal Property

Property or Survey Officers are authorized to abandon or destroy personal property, regardless of acquisition cost after receiving
written approval from approving authority.

FMSS Section Chiefs are the approving authorities for abandonment or destruction of personal property.

When the appropriate condition of the property has been determined, Form 1933, Report of Survey is prepared and shall contain the justification for the abandonment or destruction action. Form 1933 serves as the official
document which cites both the justification and the disposal method to be used. Form 1933 should include:

a detailed description of the property, condition, and initial acquisition cost;

the condition or circumstances necessitating abandonment or destruction action, along with any pertinent supporting documentation;

a statement that the proposed abandonment or destruction action will not be detrimental or dangerous to public health or safety
and will not infringe on the rights of other persons, and

the signature of the appropriate approving official for the abandonment or destruction action.

The Property Officer prepares and submits Form 1933 to the Property Officer and Approving Authority for approval to abandon
or destroy property, regardless of acquisition cost.

The Property Officer disposes of personal property only after written approval is placed on Form 1933. The approved Form 1933
is also retained and used as a source document for deletions of property from IRS property inventory systems.

Abandonment or destruction is witnessed by an employee of the property staff. This employee signs as witness on Form 1933.

Property Officers submit information copies of each completed Form 1933 to the FMSS Property Officer/Section Chief for post
review.

1.14.4.15.26
(11-24-2014)Notices of Abandonment or Destruction

Following approval for abandonment or destruction, public notice of the planned action is given. Public notice is posted in
the area in which the property is located and should be for a period of not less than seven (7) calendar days. The public
notice includes:

a general description of the property,

the date and location of the abandonment or destruction action, and

an offer to sell the property

Public notice can also be accomplished by posting announcements in public places, such as bulletin boards, local post offices,
or other government offices. Offers to purchase the property resulting from public notices are referred to the appropriate
GSA regional office.

If offers are received for property described in public notices, the following actions should be taken:

IRS will sell the property if these proceeds are not expected to exceed $5,000.

If the proceeds are expected to exceed $5,000, the office which gave notice to abandon or destroy contacts the local GSA sales
office to request GSA approval.

1.14.4.15.27
(11-24-2014)Exceptions to Issuing Public Notices

There are exceptions to the requirement for public notice of abandonment or destruction action (FMR 102-36.330). These exceptions
are listed below.

In the best interest of the public, immediate abandonment or destruction is necessary or desirable because of the nature of
the property or the difficulty or expense in its care and handling. In this case, the written justification and document should
state that:

The value of the property is so little or the cost of care and handling is so great that its retention for advertising for
sale is clearly not economical; or

Immediate abandonment or destruction is required because of health, safety, or security considerations; or

The property to be abandoned or destroyed is unserviceable expendable property with an acquisition cost (estimated if unknown)
of less than $500, and the accumulation of this type of property is not economical nor in the best interest of the government.

A single line item of property to be abandoned or destroyed at any one location at any one time has an acquisition cost of
less than $500.

Following the actual abandonment or destruction, Form 1933 is completed to document the action and meet audit requirements.
This certification is made part of the official property account records. The certification should read as follows:

I certify that (identify items) was/were abandoned/destroyed in the manner authorized by the Federal Property Management Regulations
and other applicable regulations.

____________________

____________________

Approving Official

Date

I have witnessed the (abandonment/destruction) of the described property in the manner stated and on the date stated herein.

____________________

____________________

Witness

Date

The certification is typed on the front of Form 1933 and signed by the appropriate approving official and the employee, preferable
a person working in property management who actually witnessed the abandonment or destruction action. The warehouse representative
loading or witnessing the loading of the truck carrying the property to the disposing entity may sign as the witnessing official
if no other IRS employee is available.

1.14.4.15.29
(11-24-2014)Computers for Learning

The Computers for Learning (CFL) program evolved as a guide for implementing Executive Order 12999, Educational Technology:
Ensuring Opportunity for all Children in the Next Century. The Executive Order encourages agencies, to the extent permitted
by law, to transfer computers and related computer peripheral equipment excess to their needs directly to schools and some
educational nonprofit organizations. The CFL program specifically matches the computer needs of schools and educational nonprofit
organizations with excess equipment in Federal agencies.

Direct transfers are authorized by law through 15 USC 3710(i) commonly known as the Stevenson-Wydler Act (amended by Public
Law 102–245 on February 14, 1992). The CFL program's ambitious goal is to make modern computer technology an integral part
of every classroom so that every child has the opportunity to be educated to his or her full potential. See GSA's web site
at http://computersforlearning.gov/ for additional information and specific answers to questions about the program under their "Frequently Asked Questions"
link.

The Computers for Learning GSAXcess® web site facilitates the transfer of excess and surplus federal computer equipment to
schools and nonprofit educational organizations for those agency's that wish to report their computers online. GSA disposes
of personal property (furniture, computers, equipment, vehicles, etc.) through the excess process, http://www.GSAXcess.gov. Once a federal agency determines it has unneeded property, federal agencies can transfer Electronic Equipment (Federal Supply
Group 70) directly to schools and educational non-profits. Offices may use the CFL online reporting system throughout the
year to report to GSA computers eligible for transfer to schools and allow GSA to originate the transfer. Or, they may initiate
these transfers themselves with local schools and report the sum total of the transfers on the annual Non-Federal Recipient's
Report, with the attached worksheet, listing the quantities of specific component types donated to various schools.

Between the two methods, the online system requires much more up-front time because all computer equipment listed on the SF-120
must also be entered into the CFL database by the reporting agency. Once on the CFL database, schools are allowed to pick
and choose what computers they take. When the computers have been entered onto the CFL database, the reporting agency must
store all of the computers for inspection by school officials. Schools are allowed to accept only the items they want and
leave the unwanted items with the agency.

Because of these requirements, (the additional data entry, storage requirements, and the allowance for schools to take only
the most desirable items while leaving the rest), IRS has elected to not use the online CFL program. It was found to be more
efficient to deal directly with local schools and prepare the annual record of computer equipment donated through the CFL
program. This record accompanies the annual Non-Federal Recipients Report which is submitted to GSA through the Department
of the Treasury at the end of the fiscal year.

1.14.4.15.30
(11-24-2014)Annual Property Reports to GSA

Report of Property Furnished to Non Federal Recipients

Pursuant to 40 USC 529, executive agencies must submit to GSA, following the close of each fiscal year, an annual report of
personal property furnished to any non-federal recipient during the previous fiscal year. In addition, Executive Order (EO)
12999 requires agencies to report to GSA any excess computers and related peripheral equipment that is transferred directly
to schools and nonprofit educational institutions (see also 41 CFR 102-36.475). This information is collected annually from
each FMSS Territory office in December and a consolidated response is submitted to the Department of the Treasury.

Examples of property reported include: Property no longer needed for direct use by the organization accountable for it and
subsequently furnished to a recipient other than a federal agency in any manner within the 50 states, the District of Columbia,
the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, Commonwealth of the Northern Mariana Islands, and
the Trust Territory of the Pacific Islands, rather than placed in the IRS internal redistribution or disposal system, and/or
property that entered the internal redistribution or disposal system and was subsequently furnished during the reporting period
in any manner whatsoever to any non-federal recipient. It also includes property that entered the internal redistribution
or disposal system and was subsequently furnished during the reporting period in any manner whatsoever to any non-federal
recipient.

The term non-federal recipients includes all contractors (fixed-price, cost-reimbursable, etc.), all grantees (e.g. project, formula, etc.), schools, and
any other individual or organization that is not a federal agency. State and local government entities are regarded as non-federal
recipients. (This does not include property donated to a state agency by GSA.)

Report of Exchange/Sale Transactions

Federal Management Regulation (FMR) 102-39.85 (41 CFR 102-39.85) requires each executive agency to submit to GSA a summary
report on transactions made under the exchange/sale authority of 40 USC 503 during the fiscal year preceding the report. If
no exchange/sale transactions are conducted, a negative report to that effect is required. This information is collected annually
from each FMSS Territory office in December and a consolidated response is submitted to the Department of the Treasury.

1.14.4.16.1
(11-24-2014)FMSS Responsibilities

recommending appropriate procedures for managing accountability and control of investigative and document equipment and

providing guidance on use and disposal of property.

FMSS Territory Managers are responsible for accountability of property assigned and used by CI, as outlined in IRM 1.14.4.15.2.

FMSS is responsible for:

assisting the investigative Property Officer in the disposal of excess or surplus investigative equipment when requested;

providing customer support for space, alterations, telephone service, and all other normal daily administrative needs required
to operate CI equipment;

performing all current services except for duties formerly performed by the budget/fiscal officers relating to plan development
and monitoring as stated in the Memorandum of Understanding for Criminal Investigation; and

performing inventories of non-investigative equipment when required.

1.14.4.16.2
(11-24-2014)Accountability

FMSS is responsible for inventorying on KISAM all non-investigative equipment assets that belong to CI costing $1000 or more
for High-Risk assets and $5000 for other property, and all leased non-investigative equipment, when required.

1.14.4.16.3
(11-24-2014)Transfers

When CI non-IT administrative assets are transferred from National Office or field offices, FMSS Property and Asset Management
may assist in the preparation of the SF-122, Transfer Order Excess Personal Property, and coordinate the transfer, ensuring that the FMSS KISAM Coordinator receives a copy to update KISAM. Transfers of investigative
equipment between CI offices are accomplished using appropriate CIMIS procedures.

For interagency property transfers, a SF-122, Transfer Order Excess Personal Property, will be prepared by the transferee (receiving office).

FMSS Property and Asset Management may assist in the preparation of the SF-120, Report of Excess Property, and dispose of the assets in accordance with IRS and local office disposal procedures. These procedures may include forwarding
the SF-120 to the General Services Administration (GSA) for disposition instructions.

FMSS Property and Asset Management will send a final copy of the disposal document, along with a copy of the SF-120 to the
responsible CI Coordinator within 30 days after the disposal is made.

Investigative equipment that is lost, stolen, damaged, or destroyed will be reported on Form 1933, Report of Survey, in accordance with the procedures outlined in IRM 9.10.1.

1.14.4.16.5
(11-24-2014)Disposition of Firearms

As used in this section, the term "firearms"
includes any weapon designed to expel a projectile or projectiles by an explosive device.

Firearms may not be used as exchange/sale property. See FMR 102-39.60.

Firearms may be reported as excess through the local FMSS Territory office, provided such firearms are in excellent condition
and known to be used for security or law enforcement, or are sufficiently unique to be of interest to a federal museum.

Firearms not reportable as excess (as cited under 3 above), should be reported to FMSS Headquarters, Management and Administration
for sale as scrap after total destruction by crushing, cutting, breaking, or deforming in a manner to assure the firearms
are completely inoperative and to preclude their being made operative.

1.14.4.17
(11-24-2014)Equipment Testing

These guidelines provide uniform procedures to control, coordinate, and evaluate the testing of equipment in the Internal
Revenue Service. They cover all non-IT equipment, including standard office machines as well as the more complex and sophisticated
equipment.

FMSS employees are sometimes approached by various sales representatives and manufacturers interested in the IRS as a market.
These contacts sometimes generate a great deal of interest and enthusiasm in operating personnel who desire to increase production
or reduce costs. Useful applications of equipment discovered by individual field offices might well be extended to other locations
if the technique were known. Procedures described in these guidelines are designed to provide wide sharing of ideas and experience
in the application and testing of equipment. In addition, these guidelines should help to avoid duplication of effort and
provide for an orderly and uniform method to control, coordinate, and evaluate tests of equipment.

1.14.4.17.1
(11-24-2014)Approval of Test

Equipment or other tangible items made available for test or demonstration purposes are not considered as loaned to IRS. However
such tests or demonstrations with a commercial vendor must be prearranged through the Contracting Officer and the Property
Officer. The Contracting Officer is the only person who can "enter into an agreement"
for the use of free hardware, software, or other products for test, demonstration, or evaluation purposes. For specific
information to be addressed in an agreement, the requesting function should contact the appropriate procurement office for
guidance.

Before proceeding with a testing program, a summary of the proposed test procedures should be forwarded to the appropriate
procurement office for review and concurrence. The summary should be developed by the requesting function in cooperation with
the appropriate authorizing official. Copies should be forwarded concurrently to the appropriate functional division and FMSS
Headquarters, Management and Administration.

1.14.4.17.1.1
(11-24-2014)Test Summary Contents

This summary should contain the purpose and scope of the test.

General information: This section should include a statement expanding upon the reasons that are briefly stated in the purpose
and give any additional helpful background information.

Description of equipment: Describe the functioning of the equipment as a whole and the functioning of its interrelated units.
The functional description should be non-technical in nature and should describe the intended use (why, where, when, and with
what). The physical descriptions or structural arrangements should be brief, supplying a list of equipment furnished, together
with approximate volume, weight, and overall dimensions.

Include a quick reference data list of pertinent technical or design characteristics of the equipment. Examples of such data
are:

General test plan. Briefly describe the general plan proposed to test the equipment.

1.14.4.17.2
(11-24-2014)Testing Procedures

When the proposed test has been returned with the Procurement office comments and concurrence, definite test plans and procedures
should be drafted.

The first step should be to set out in specific terms the objectives and scope of the test. (This should be as set out in
the summary sent to the National Office, if necessary, to take into account the Procurement office comments.)

Establish a firm but realistic schedule of events with interim goals and objectives and a final date of test.

Obtain management support at all levels. This can be done by giving briefings, orientations, and explanations of your procedures
and methods. Explain to those people concerned that their work may be interrupted or delayed because of the need to report
information. You will also need management support to make any organizational or procedural changes required to accomplish
your objective.

Obtain employee support. Testing new equipment may alarm some employees because of fear that updated equipment replaces people.
Inform employees of the purpose and intent of the test so as to reassure them and gain their wholehearted cooperation.

1.14.4.17.2.1
(11-24-2014)Conducting the Test

To obtain valid and reliable results, tests must be conducted and the results documented in a uniform manner. Also, there
must be a firm basis for comparing test results against the present operation or "control situation."
Other measures that might be taken to assure uniform operations are preparation of standard environmental conditions,
review of required supplies or forms, and provision for sufficiently trained stand-by or backup employees.

Control Situations: The use of flow charts, organizational documents, and standard operational procedures will facilitate
obtaining uniformity of operations. Strong emphasis should be placed on the importance of documenting in detail what is to
be done, where, how, who does it, when, and any other explanations needed to clarify the complexity of the operations. The
present operation should be described and recorded as standard procedure. Standard procedure, then, becomes the control situation.

Test Situation: The same standard operational procedures as outlined for the control situation should also be developed for
each test situation. This procedure is essential to assure comparative data and information. Such comparative data are needed
for valid analyses and conclusions.

1.14.4.17.2.3
(11-24-2014)Testing Reports Required

Information gained from testing must be thoroughly documented and analyzed to substantiate accepting or rejecting the equipment
being tested.

1.14.4.17.2.4
(11-24-2014)Evaluation

Results of the test should be evaluated and the findings expressed in narrative form, stating the direct or indirect advantages
to be gained, such as clerical savings, quantity discounts, value of the greater speed or accuracy, or savings due to less
space needed for files and storage.

A good analysis may include a comparative analysis format, where factors or characteristics of equipment are listed vertically
on a chart in "question"
or "statement"
form and test results portrayed horizontally for each piece of equipment tested.

Total results can then be summarized, outlining improved operational effectiveness, economy, efficiency, recommended relocation,
and reorganization or centralization of such operations. A summary of the total estimated savings in dollar value amounts
is especially meaningful.

1.14.4.17.2.5
(11-24-2014)Progress Reports

Periodic progress reports should be forwarded to the appropriate functional division and the FMSS Territory office during
the test. Reports may be in memorandum and should include such items as man hours used, units of production, hours of operation,
down-time for maintenance and repairs, and any other pertinent information on both the control and the test situations. Any
problems that could influence the validity of information should also be included. Difficulties in getting support for repair
or services by vendors is a good example of such problems. Reports should be submitted concurrently to the appropriate functional
division and the FMSS Territory office.

The frequency of these reports will be determined by the testing office and may vary from test to test, depending on the length
or complexity of the test. Because of the unique nature of these reports' varying in the amount of time each one will take,
a determination is made according to the justification submitted to the functional division as to whether or not a report
symbol should be assigned and a Form 2951, Report Clearance and Cost, submitted. This action will be necessary on all tests
and will require a one-time report symbol being assigned to the functional division.

1.14.4.17.2.6
(11-24-2014)Submission of Final Testing Report

Thirty (30) calendar days after conclusion of testing, a final report should be submitted concurrently to the functional division
and the local FMSS Territory office.

The following format is recommended for presenting the test findings:

Statement of the problem

Facts bearing on the problem

Assumptions

Discussion

Conclusions

Recommendations

1.14.4.18
(11-24-2014)Maintenance, Repair, and Rehabilitation

This sub-section prescribes procedures and guidelines for the maintenance, repair, and rehabilitation of personal property
under the jurisdiction of the Internal Revenue Service.

GSA Regional Federal Supply Schedule (FSS) offices assist agencies in the maximum use of personal property by providing maintenance,
repair, and rehabilitation services. The services are through contracts with commercial firms, agreements with the National
Industries for the Blind, and with federal repair facilities such as those provided by Federal Prison Industries.

1.14.4.18.1
(11-24-2014)Responsibilities

All employees are responsible for the proper care and protection of the property they use or control.

To avoid impairment of program efficiency, all local FMSS Territory offices should institute programs to ensure adequate care
and preventive maintenance of personal property.

Only personnel having adequate training should repair mechanical equipment.

If authorized by the employee's supervisor and used to accomplish the work of the Agency, property owned by individuals (employees
or others) may be serviced and repaired at government expense.

Each regional GSA office has contracts or arrangements with other federal agencies to rehabilitate repairable office furniture
and equipment to near-new condition. Where rehabilitation requirements exceed the capabilities of an activity or installation,
the facilities and services of GSA, including federal facilities and those under contract, shall be used as primary source
unless:

existing term contract cannot fill requirements, or

delivery requirements cannot be met.

GSA Federal Supply Service publishes a catalog, "FSS Program Guide"
and has a website for sources of information on FSS contracts. The catalog and website lists sources of supply and services
GSA provides federal agencies, including service contracts for rehabilitation of government-owned personal property. Copies
are available from any GSA regional office or you can view their website at www.GSA.Gov.

Waivers may be obtained by submitting a request to the Commissioner, Federal Supply Service, (F) General Services Administration,
Washington, D.C. 20406

The request should include the quantities involved, the difference between the service required and the service available,
and reasons why the available service does not meet requirements (FPMR 101-26.100-2)

Agency contracts existing at the time similar GSA contracts are issued will remain in effect until expiration.

GSA regional Federal Supply Service office will, upon written request, develop sources of services, evaluate contractor capabilities,
and conduct studies to justify establishing term contracts for services not already covered.

Local FMSS personnel should contact outside vendors to repair equipment. Request for repairs of furniture and equipment should
be submitted to FMSS through RTS.

In posts of duty operating without FMSS personnel, the designated representative will arrange for necessary repairs.

Property Officers or supervisors are responsible for maintaining contracts established for service and maintenance.

1.14.4.18.3
(11-24-2014)Routine Care of Office Machines

Excessive repair cost can be avoided if operators of office machines maintain them properly.

All office machines out of adjustment should be reported immediately to the supervisor.

All office machines should be covered at the end of the day to keep mechanical parts free from dust.

Machines should be placed securely on tables, desk, or stands so that they will not be knocked off accidently.

Electric typewriters, adding machines, etc., should be shut off when not in use.

Typewriter erasures should be made at the far left or far right of the machine to avoid clogging mechanical parts.

Office machines should be cleaned and dusted regularly to keep them operating efficiently.

1.14.4.18.4
(11-24-2014)Servicing Office Machines

Office machines may be serviced by annual maintenance contracts or by per-call arrangements. Maintenance contracts are usually
more costly than per-call arrangements. Therefore, maintenance agreements should not be made unless such use can be fully
justified. Before service is selected, the following factors should be considered.

standard of performance required,

degree of reliability needed,

daily use (heavy or light),

proximity to available repair facilities,

past experience with service facility (quality of work, reputation, etc.),

operator's care of machine,

age and repair record of machine,

availability of replacement in case of breakdown,

number of like machines and the overall frequency of repairs required, and

environmental factors (dusty surroundings, etc.).

Under maintenance agreements or per-call arrangements, service should be arranged during slack periods if possible. It is
usually helpful if all or several items are serviced at the same time and place.

1.14.4.18.5
(11-24-2014)Rehabilitating Metal Furniture

Most IRS offices are furnished with a mix of metal and other furniture systems. Furthermore, GSA limits the purchase of new
correspondence filing cabinets in accordance with regulations set forth FPMR 101-26.308. Metal furniture and filing cabinets
can be restored to near-new condition with electrostatic spray painting. This method of rehabilitation is recommended because:

the painting can be done on-site, thus avoiding the inconvenience and hazards of transporting furniture;

the paint dries in minutes, so items are out of service only a short time;

drawers or desks and file cabinets need not be emptied before paint is applied, and

the choice of colors available provides ample opportunity to enhance office decor.

Some GSA regions have contracts for electrostatic spray painting. This service may be obtained on the open market in areas
not covered by the contract.

Before entering into contract, check the quality of work the prospective contractor has done.

1.14.4.18.6
(11-24-2014)Servicing Electromechanical Equipment

All campuses have established their own resources for repairs of certain equipment, except that which IRS National Office
has included in their equipment acquisition contracts. Each campus should have contract technicians for day-to-day maintenance
of this equipment.

When difficult repair problems develop, campus repair technicians should contact either the manufacturer or independent service
organization for contract services.

Local maintenance contracts should be made for repairs beyond the capabilities of the IRS mechanics. Contracts should be made
either with the manufacturer or an independent service organization.

1.14.4.18.7
(11-24-2014)Maintaining Comprehensive Repair Records

To develop an efficient program for the repair and rehabilitating of personal property, the property officers should keep
comprehensive records on maintenance and repair of furniture and equipment.

Complete repair records are useful in determining whether property should be repaired or replaced. Consider the expected remaining
usefulness of an item after repairs are made. A substantial repair expenditure may be justified if the repairs restore the
item to good as new condition.

1.14.4.18.8
(11-24-2014)Replacement Standards

Items meeting replacement standards should not be replaced if they can continue to be used or operated without excessive repair
cost or significant lost in trade-in-value.

Estimated repair or overhaul costs may be obtained from contractors providing service under existing GSA term contracts or
the lowest rate available from other sources. Costs should include transportation.

1.14.4.18.9
(11-24-2014)Standards for Replacing Furniture

Furniture should be replaced if analysis indicates that the furniture is no longer functionally efficient to meet the requirements
of the employee's job.

In all offices, furniture and furnishings should provide an efficient and comfortable work environment for employees and visitors.
All furniture and furnishings should be compatible with the office standard.

1.14.4.19
(11-24-2014)Glossaries

General Property Management Definitions - The following is a list of common terms with brief definitions, used in the IRS property management program and in this manual:

Capitalized Property - All property assets that have a useful life of one year or more and a unit cost or current fair market value of $5,000 and
above.

Contracting Officer -Government official who can bind the US government to a contract that is greater than the micro-purchase threshold and is
limited in scope of authority by the head of the agency.

Custodial Officer - Government official charged with ensuring accountability for personal property within his/her assigned program area.

Excess Personal Property - Any property under the control of any Federal agency not required for its needs and the discharge of its responsibilities.

FAC - Facilities Area Coordinator

Maintenance - the scheduled cleaning, servicing and adjustment of an article to keep it in satisfactory operating condition

Non-Expendable Property - All property assets that are capitalized and not costed to operations; property of a durable nature with a useful life of
more than one year; with sufficient value to justify maintaining monetary property records.

Personal Property - All tangible property other than real estate. It generally includes movable items not permanently attached or affixed to
the real estate. In determining whether an item is personal or real property, the manner in which it is affixed to the real
property and the intention of the owner with regard to the removal at the lease period should be considered. If the item can
be removed without serious injury to the building or to the item itself, then it could be defined as tangible personal property.

Property Officer - Government official responsible for accountability of property within the agency or within the Territory. This is usually
the FMSS Section Chief who oversees the Property Program

Property Program Consultant - Local Support Services Specialist working in the Property Management Program in the FMSS Territory.

Repair - the restoration of an article to a serviceable or operable condition from an unserviceable or inoperable condition which resulted
from wear, breakage, injury, or partial destruction.

Rehabilitation - the restoration or renovation of serviceable or operable articles to near-new condition or the repair of unserviceable or
inoperable articles when the overall objective is to restore or renovate articles to a near-new condition.

Surplus Personal Property - Any excess property not required for the needs and the discharge of the responsibilities of all Federal agencies, as determined
by the Administrator, GSA.

Survey Officer - Government official appointed to investigate any loss to the government.

KISAM Definitions

Accountable Property -All capitalized and non-expendable property for which accountability is established in the perpetual inventory accounts and
the general ledger.

Acquisition Code - Identifies how an item was acquired by the agency, e.g. purchased, leased, seized.

Acquisition Cost -The original cost to the government of an item as it is recorded in the financial and accounting records.

Acquisition Date -The date a property item was marked received by the holding agency.

Asset Type -General description or classification of a property item.

Assigned Location - Address of an IRS office that has physical custody of an asset.

Barcode - A self-contained message with information encoded in the widths of bars and spaces in a printed pattern that is easily read
and printed by machine.

Barcode Number - A unique number assigned to each property asset for identification purposes.

Building Number - A unique identifier assigned by GSA to each building occupied by IRS.

Category - A unique name assigned to an asset group for identification of the asset.

Capitalized Property - All property items that have a useful life of one year or more and a unit cost or current fair market value of $5,000 and
above.

Class Code - A code used to identify an item according to its classification within a Federal Supply Classification Group.

Condition Code - A code used to identify the condition of any personal property asset.

Disposal Code - A numerical code that describes the method used for removing an asset from the inventory.

Disposal Date - the date on which the reporting office actually relinquishes accountability for an asset as it is removed from IRS premises

Excess Property - Non-expendable property that is excess to the reporting office's needs. Includes property determined unserviceable by the
property officer.

Expendable Property - All property that, when used, is consumed, loses its identity, or becomes a component part of other equipment or fixed property,
e.g. pencils, paper, lead, batteries, etc.

FSC Group - Federal Supply Code - representing a general classification of inventory items based on the GSA Federal Supply Classification
system.

KISAM Inventory Coordinator - IRS official charged with responsibility for keeping track of accountable property on the database.

Non-Expendable Property - All property assets that are counted as capitalized and not costed to operations, e.g. supplies. It is property of durable
nature with a useful life of more than one year, has sufficient value to justify maintaining and continuing monetary property
records, is of a nature that moderate damage results in repair rather than replacement, and generally costs $5,000 or more.

Useful Life - The average number of years an asset is considered usable before its value is fully depreciated.

Workstation - An area or mini-environment in which all personal space, equipment, and furnishings needed for a particular task have been
brought together.

Personal Property Disposition Definitions - The Federal Personal Property Utilization and Disposal Program encompasses redistribution, utilization, donation, sale, and
abandonment or destruction of government-owned personal property. Definitions of frequently-used terms related to this program
are as follows:

Abandoned or Unclaimed Property - Personal property found on premises owned or leased by the government and subject to the filing of claims there of by former
owner(s) within three (3) years from the vesting of title in the United States.

Condition Codes - A numeric code that describes the physical condition and serviceability of personal property.

Excess Personal Property - Any personal property under the control of any federal agency, not required for its needs and the discharge of its responsibilities,
as determined by the head of the agency.

Exchange/Sale Property - Personal property not excess to the needs of the owning agency but eligible for replacement, which is exchanged or sold under
the provisions of FMR part 39 in order to apply the exchange allowances or proceeds of sale, in whole or part payment, for
replacement with a similar (like) item.

Executive Agency - An executive department, military department, or any independent establishment, within the meaning of 5 USC 101, 102, and
104 (1), respectively, and wholly-owned government corporation within the meaning of 31 USC 9101(3).

Federal Agency - An executive agency or any independent establishment in the legislative or judicial branch of the government (except the Senate,
the House of Representatives, or the Architect of the Capitol, and any activities under the Architect's direction).

Forfeited Property - Personal property acquired by a federal agency either by a summary process or by order of a court of competent jurisdiction
pursuant to any law of the United States

Holding Agency - An executive agency which has accountability for and generally possession of the property.

Limited Sale - Sale of reportable and/or non-reportable property held by and conducted by the agency when estimated proceeds are not expected
to exceed $5,000.

Non-reportable Property - Personal property which meets the GSA requirement in accordance with FMR 102-36.220. Non-reportable property is available
for transfer.

Personal Property - Property of any kind, or interest therein, except real property, records of the federal government, and naval vessels of the
following categories: battleships, cruisers, aircraft carriers, destroyers, and submarines.

Private Property - Any and all property owned by or belonging to an individual, group, or corporation.

Reporting Agency - Federal Agency that initiates the SF-120 Report Excess Personal Property. The reporting agency may or may not be the same
as the holding agency.

Salvage - Personal property which has some value in excess of its basic material content but is in such condition that it has no reasonable
prospect of the use for the purpose originally intended, and its repair or rehabilitation for use is impractical.

Scrap - Personal property that has no value except for its basic material content.

State Agency for Surplus Property - An agency in each state designated under state law as responsible for fair and equitable distribution within the state of
all donations of surplus personal property to public agencies and eligible non-profit, tax-exempt activities for authorized
purposes.

Surplus Personal Property - Any excess personal property not required for the needs and discharge of responsibilities of all federal agencies, as determined
by the Administrator of GSA.

Usable Property - Any personal property other than scrap or waste.

Utilization - Identification, reporting and transfer of excess personal property among federal agencies to fill current or future authorized
requirements in lieu of new procurement.

Voluntarily Abandoned Property - Personal property abandoned to a federal agency in such a manner as to vest title thereto in the United States.

Administrative Equipment - Equipment used for administrative and general office purposes such as typewriters, calculators or dictating equipment for
centralized operations that are not included in investigative equipment.

Exhibit 1.14.4-1
GSA Property Condition Codes

Disposal Condition Code

Definition

Explanation

1

New/Unused

Unused property that is usable without repairs and identical or interchangeable with new items from normal supply sources

4

Used

Used property that is usable without repairs and most of its useful life remains.

7

Repairable

Required repairs are minor and should not exceed 15 percent of original acquisition cost.

X

Salvage

Property has some value in excess of its basic material content, but repair or rehabilitation to use for the originally intended
purpose is clearly impractical.

S

Scrap

Material that has no value except for its basic material content.

Exhibit 1.14.4-2
IRS Disposal Code and Associated Disposal Document

Disposal Code

Description

Disposal Document (Keep all paperwork for a minimum of three years)

00 - IT Staff

Transfer to AWSS/FMSS

SF-120 Report of Excess Personal Property

01 - AWSS/FMSS

Sold by IRS - all sales except Exchange/Sale or GSA

SF-126 Report of Property for Sale

02 - AWSS/FMSS

Abandon/Destruction - Used only as authorized under FMR 102-36 and described in IRM 1.14.4

Form 1933 Report of Survey

03 - AWSS/FMSS

Transfer out of IRS by GSA

SF-122 Transfer Order, Excess Personal Property

04 - AWSS/FMSS

Direct Transfer out of IRS, includes transfer of IT property to schools and non-profit educational organizations

SF-122 Transfer Order, Excess Personal Property

05 - AWSS/FMSS

Salvage/Scrap-Used only for transfers to UNICOR or other certified recyclers

SF-122 Transfer Order, Excess Personal Property

06 - AWSS/FMSS

Donation by GSA-Transfer of personal property to non-federal public agencies and other specifically designated recipients
by GSA

SF-123 Transfer Order, Surplus Personal Property

07 - AWSS/FMSS

Transfer out of IRS, temporary or indefinitely held by other government agencies such as TIGTA, DOJ, etc. for review and/or
investigative purposes

Miscellaneous Disposal Form

08 - IT Staff

Incorrectly inventoried-items that are not required to be inventoried or item incorrectly added to Asset Manager

Exchange/No Sale-Property items disposed of through the GSA sales process of the Exchange/Sales program

SF-126 Report of Property for Sale

14 - AWSS/FMSS

Non-renewal of lease agreement-Asset removed from inventory

Miscellaneous Disposal Form

16 (missing) IT Staff

Temporarily missing, lost or stolen assets, formerly used for pending resolution

Form 1933 Report of Survey

17 - AWSS/FMSS

Lost property that is not associated with any suspected criminal activity reported to local authorities, and/or reported to
TIGTA and CSIRC for investigation. Must have a Form 1933, Report of Survey prepared. Non-IT must be reported to SAMC

Form 1933 Report of Survey

18 - AWSS/FMSS

Stolen property reported to local authorities. TIGTA and CSIRC for investigation. Must have a Form 1933, Report of Survey
prepared. Non-IT must be reported to SAMC.